AUTOIMMUNE INC. REPORTS FOURTH QUARTER AND
1995 YEAR END FINANCIAL RESULTS

-Colloral® Dose Ranging Study Begins; Uveitis Data Analysis Pending At NIH-

Lexington, Massachusetts, March 5, 1996 -- AutoImmune Inc. (Nasdaq: AIMM) today reported a net loss of $13.6 million, or $1.01 per share, for the year ended December 31, 1995, compared with a net loss of $14.7 million, or $1.44 per share, for the year ended December 31, 1994. Research and development expenses for 1995 were $14.8 million, up from $13.6 million in 1994, reflecting advancement of human clinical trials of the Company's oral tolerance pharmaceuticals.

Management reported that enrollment has begun in the Company's dose refinement trial for Colloral® in rheumatoid arthritis with completion anticipated at year end. With respect to the Phase I/II uveitis trial recently concluded at the National Institutes of Health, analysis of the data is ongoing. Government shutdowns caused a delay in the availability of final results, which are now expected in the second quarter.

"AutoImmune has made significant progress with its clinical development programs," said Robert C. Bishop, Ph.D., President and Chief Executive Officer. "Our lead product, Myloral® for multiple sclerosis, is now in the final months of a Phase III trial, and we are planning to file a PLA by the end of next year."

Dr. Bishop added, "Colloral® achieved promising results in a Phase II study during 1995. Two additional trials will be starting in the next several months. These studies, along with the dose-refinement trial already underway, will guide the design of the Phase III studies scheduled to begin in 1997."

He also noted that, "Phase II trials in diabetes, sponsored by Eli Lilly, are expected to begin this year. In addition, a Phase I trial of AI-502 for transplant rejection is planned during 1996."

For the fourth quarter ended December 31, 1995, AutoImmune posted a net loss of $3.1 million, or $0.19 per share, compared with a net loss of $4.4 million, or $0.43 per share for the comparable 1994 quarter.

AutoImmune Inc. is a biopharmaceutical company developing a new class of drug therapies for the treatment of autoimmune diseases. With highly focused use of its human and capital resources, the Company has successfully brought four product candidates based on the principle of oral tolerance into human clinical testing. These orally administered products are targeted for the treatment of multiple sclerosis, rheumatoid arthritis, autoimmune-mediated diabetes and uveitis.